Salim Chahine Acting Dean,

Abdul Al Aziz Al Sagar Endowed Chair Professor of Finance OSB - American University of Beirut

Role of Business Schools in Emerging Countries and

Challenging Environments

The Suliman S. Olayan School of Business (OSB)

Experience

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Role of Business Schools in Emerging Countries and

Challenging Environments

Emerging Countries

The term is often reduced to the unhelpful tautology

that emerging markets are “emerging” because they

have not “emerged.” (Forbes, 2010)

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Role of Business Schools in Emerging Countries and

Challenging Environments

Emerging Countries?

- Fast Growing Economies (Large, low-cost and

increasingly educated labor pools with tremendous

competitive advantage in production, and IT).

- Emerging competitors (BRIC could be larger than (USA,

Japan, UK, Germany, France and Italy) before the

middle of the twenty-first century (Goldman Sachs, 2003).

- A transformative shift in the distribution of global power.

Fierce Competition (e.g. Lenovo ‘s purchase of IBM ‘s

personal computer business in 2004, the acquisition of

Jaguar and Land Rover by India’s Tata Motors in 2008).

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Role of Business Schools in Emerging Countries and

Challenging Environments

Emerging Countries!

A deeper look suggests that emerging markets are:

- financially Unstable.

- Insecure Intellectual property rights.

- Government bureaucracies.

- Unreliable Product quality.

- Local talent is insufficient to staff operations.

- Endemic corruption.

=> An emerging market is a country that has some

characteristics of a developed market, but does not meet

standards to be a developed market.

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Role of Business Schools in Emerging Countries and

Challenging Environments

Business Schools in Emerging Countries

Business Education is not simply about greater

profitability and competitiveness of businesses

It is about building a sustainable model

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Role of Business Schools in Emerging Countries and

Challenging Environments

Business Schools in Emerging Countries

• It is not sufficient to be A provider (there are about

15,000 educational institutions worldwide providing

business education degrees, the number has grown

from around 11,000 since 2009)

• To play A role, it is necessary to become a provider of

quality business education. However this brings with it a

set of challenges

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Role of Business Schools in Emerging Countries and

Challenging Environments

School of Business: A Center For Progress

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Business School

Student

External

•Business

•Government

•Non-government

Alumni

Internal

•Faculty

•University

Society

•Increased Openness

•Middle Class

You need to think about your Stakeholders rather than your Shareholders

Role of Business Schools in Emerging Countries and

Challenging Environments

School of Business: A Center For Progress

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• To develop an Entrepreneurial/Innovation spirit that

could support the liberalization of our economies

• To adapt training to a changing need starting with

technical knowledge and moving gradually to soft

skills as our economies become more mature and

increasingly complex

• To impact and add value to our community

Role of Business Schools in Emerging Countries and

Challenging Environments

Think Big

Clear Vision and an Aligned Mission

Our Role:

• Programs

• Faculty

• Community

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Ch

alle

ng

es

Role of Business Schools in Emerging Countries and

Challenging Environments

Role: Programs and Students

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Fostering a culture of continuous improvement

• Macro Level: Develop Their Understanding In: o National and global economies

o Ethics, good governance, and awareness of societal needs

o Entrepreneurship

• Micro Level: Develop Their Abilities And Skills In: o Analyzing, evaluating, and communicating

o Planning and organizing

o Leading and delegating

o Conducting negotiations and working either as an individual or a team

member

Role of Business Schools in Emerging Countries and

Challenging Environments

Role: Faculty/University

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• To have the right balance at the local, regional, and

international levels: o Professorial: produce impactful research and engage various

members of the community

o Non-Professorial: who can build the bridge between Academia and

the business community

• Lead efforts to increase the level of academic rigor and

excellence, and practical relevance to other disciplines

Role of Business Schools in Emerging Countries and

Challenging Environments

Role: Community

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• Nurture and grow Alumni base and engage them in the

life of the school

• Catalyst of positive change to business, government, and

non-government organizations, building capabilities and

spreading knowledge and best practices.

• Contribute to the creation of a middle class as more

people will have access to better paying jobs and

benefits

Role of Business Schools in Emerging Countries and

Challenging Environments 10/27/2015 13

Regional Leadership, Global Excellence.

A Business School in a Challenging Environment: The Olayan School of Business Experience

American University of Beirut

Role of Business Schools in Emerging Countries and

Challenging Environments 10/27/2015 14

AUB History and Tradition

Founded 150 years ago in the heart of Beirut

Role of Business Schools in Emerging Countries and

Challenging Environments 10/27/2015 15

AUB History and Tradition AUB Campus :

- 60.9 acre (246,459 sqm)

- 8,500 students per year

- campus overlooks the Mediterranean Sea and includes athletic fields,

private beach,…

- A total of 64 buildings.

- 6 faculties and Schools

- the biggest Medical

Center/Hospital in

the Arab World

- An Influential history

in the region

Role of Business Schools in Emerging Countries and

Challenging Environments

“That they may have life and have it more abundantly.”

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Role of Business Schools in Emerging Countries and

Challenging Environments 10/27/2015 17

LEBANON: A Complex Mosaic

Role of Business Schools in Emerging Countries and

Challenging Environments 10/27/2015 18

LEBANON: A Complex Mosaic

Role of Business Schools in Emerging Countries and

Challenging Environments 10/27/2015 19

The Middle East and North Africa Region

7.38 % of

the Globe;

5.6 % of

Global

Population;

4.15 % of

Global GDP

The MENA region has vast reserves of petroleum and natural gas that make it a vital source of global economic stability.

According to the Oil and Gas Journal (January 1, 2009), the MENA region has 60% of the world's oil reserves (810.98 billion barrels (128.936 km3)) and 45% of the world's natural gas reserves (2,868,886 billion cubic feet (81,237.8 km3) ).

Role of Business Schools in Emerging Countries and

Challenging Environments 10/27/2015 20

Business Education

AUB introduced business

education to the Middle East

region in 1900.

AUB has a business alumni base of

over 8,000 worldwide. Its business

graduates are considered among the region’s leaders – prime

ministers, CEOs, diplomats,

members of parliament,….

Role of Business Schools in Emerging Countries and

Challenging Environments

“We aim to become globally recognized as the leading

business school between Europe and South Asia in terms

of academic research, teaching excellence and business impact.”

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“… OSB … aims at developing business leaders in, for or from the Middle East region and beyond.

With our 55 Full-time Faculty members, we serve about 1200 students based on Our: - Programs: BBA, Executive MBA, MBA, Specialized Masters Programs (MFin,

MHRM,…) - Intellectual Contributions

- The highest ethical standards and a continuous improvement ethos in all its activities.”

Vision (Our Strategic Intent / Aspirations)

Mission (How to Achieve our Vision?)

Role of Business Schools in Emerging Countries and

Challenging Environments 10/27/2015 22

Key Performance Indicators 2015-2016

Total Full-time Faculty 55

Professorial (Full, Associate, Assistant) 41

Non-Professorial(Instructor, Lecturer, Senior Lecturer) 14

Students (UG/GRAD)

Graduate

MBA / EMBA / MFIN / MHRM 134

Undergraduate 1000

Total Enrollment 1,134

The Olayan School of Business: A Snapshot

Role of Business Schools in Emerging Countries and

Challenging Environments 10/27/2015 23

The Olayan School of Business: A Snapshot

o Executive education: (e.g. Hikma Pharmaceutical, National Bank of Kuwait, Kuwait Petroleum Company, Al Fardan – Qatar, Aramex, Audi Bank, Averda, etc.)

o Innovative teaching: Case study writing and teaching, Blended learning, Simulations (Capsim)

o Conferences (Business, HR, …)

o Workshops (NGOs, Women Entrepreneurs, Family Business,…)

o Seminars:

• Visiting Scholars Series: Michael Brennan, Naresh Malhotra, Luigi Zingales,…

• Keynote Speakers: Carlos Slim, Carlos Ghosn, Sam Zell,…

Role of Business Schools in Emerging Countries and

Challenging Environments 10/27/2015 24

Publishing in Quality Journals Journal Number Impact Factor

STRATEGIC MANAGEMENT JOURNAL 1 3.341

ENTREPRENEURSHIP THEORY AND PRACTICE 1 3.144

JOURNAL OF COMPUTER-MEDIATED COMMUNICATION 1 3.117

KNOWLEDGE-BASED SYSTEMS 1 2.947

INTERNATIONAL JOURNAL OF NURSING STUDIES 1 2.901

INTERNATIONAL JOURNAL OF PRODUCTION ECONOMICS 1 2.752

JOURNAL OF WORLD BUSINESS 1 2.388

GOVERNMENT INFORMATION QUARTERLY 1 2.321

EUROPEAN JOURNAL OF INFORMATION SYSTEMS 1 2.213

JOURNAL OF BUSINESS ETHICS 8 1.326

JOURNAL OF CORPORATE FINANCE 5 1.193

INTERNATIONAL JOURNAL OF HUMAN RESOURCE MANAGEMENT 4 0.916

BUSINESS ETHICS-A EUROPEAN REVIEW 4 0.541

CAREER DEVELOPMENT INTERNATIONAL 3 1.290

ASIA PACIFIC JOURNAL OF MANAGEMENT 2 2.091

BUSINESS ETHICS QUARTERLY 2 1.927

COMPUTERS & OPERATIONS RESEARCH 2 1.861

ENVIRONMENTAL MONITORING AND ASSESSMENT 2 1.679

ACM TRANSACTIONS ON INTELLIGENT SYSTEMS AND TECHNOLOGY 2 1.252

JOURNAL OF BUSINESS FINANCE & ACCOUNTING 2 0.914

ACCOUNTING HORIZONS 2 0.881

We Achieve our Mission through our Intellectual Contributions

Role of Business Schools in Emerging Countries and

Challenging Environments 10/27/2015 25

LinkedIn Profile of Business Graduates

We Achieve our Mission through our Programs

Role of Business Schools in Emerging Countries and

Challenging Environments 10/27/2015 26

Business Graduates: Employers

We Achieve our Mission through our Programs

Role of Business Schools in Emerging Countries and

Challenging Environments 10/27/2015 27

Business Graduates: Roles

We Achieve our Mission through our Programs

Role of Business Schools in Emerging Countries and

Challenging Environments 10/27/2015 28

“Knowledge is power. Information is liberating.

Education is the premise of progress, in every

society, in every family” -Kofi Annan

Thank You